Vale to make $1bn investment in Brazil
Date added: 12th February, 2010 at 09:34
(view all articles from February, 2010)
Categories: Economy
Vale will make a $1 billion (£639 million) investment in Brazil after agreeing to buy a 20 per cent stake in the country's leading producer of fertilisers, Fosfertil.
The investment in Brazil is a major step towards Vale's goal of becoming one of the biggest producers of fertiliser in the world.
Vale's investment in Fosfertil, which follows its $3.8 billion (£2.4 billion) buyout of Bunge's fertiliser assets earlier this year, gives it a total stake of 78.90 per cent in the company.
Vale's finance director Fabio Barbosa told the Financial Times that the investment in Brazil made financial sense as there is only a finite amount of fertiliser in the country.
He said: "This is a major investment considering what we have in the pipeline and what we have just paid, but the rationale is the same as it is in other minerals and metals."
To complete the deal, Vale will acquire shares in Fosfertil from BPI, Heringer, Fertipar, Yara and Mosaic.
Related Articles
Vale encouraged to make investment in Brazil
Date added: 9th February, 2010 at 08:20
(view all articles from February, 2010)
'No bubble burst danger' for investment in Brazil
Date added: 8th February, 2010 at 09:19
(view all articles from February, 2010)
Auction for railways investment in Brazil
Date added: 5th February, 2010 at 11:06
(view all articles from February, 2010)